re: Southern Eagle Purchasing Glazer's Beer Portfolio

quote:Yep, like being able to go to the brewery and pick up a keg or cans and bottles.

not only that, but this asinine system requires me to "purchase a tour" of a brewery, and oh, by the way, you get these four tokens that are redeemable for free beer! The brewery is not allowed to sell tasters from their brewery. Find a sample you liked? Well, can't buy it at the brewery, go hunt it from retailers.

Of course, in Texas, I can go to any winery and buy glasses all day, and when I find what I like, I can buy cases of it to bring home. They don't even have to make the wine on site. There are winery shops set up that don't produce a drop on site, but they sell all they want.

quote:Of course, in Texas, I can go to any winery and buy glasses all day, and when I find what I like, I can buy cases of it to bring home. They don't even have to make the wine on site. There are winery shops set up that don't produce a drop on site, but they sell all they want.

And the winery can get a distribution deal for more reach if they want to as well.

quote:Do you work for a distributor? Why should someone be forced to sell through a middleman?

This. Breweries should have the option to conduct and negotiate business in a way that is best for them. I would bet all of them would likely keep some contracts with distributors, but would also like the option to deal directly with stores and consumers.

we had 2 bills in the Texas legislature in the last session regarding this. The first would have allowed breweries to sell certain amounts directly to the public. The second would have allowed brewpubs to bottle and get their beers onto shelves in retail locations

See, here in Texas, if you have a brewpub, then you can legally sell beer to the public. You just can't bottle it and sell it for consumption off site.

The three-tier system is actually a good thing; mostly. Read up on the history prior to prohibition and the so-called "tied-houses."

Here is a good article on why the system is good for smaller breweries: LINK

Also, there are several obvious reasons for the system including

quote:avoiding overly aggressive marketing and sales practices of the pre-Prohibition era; generating tax revenues that can be collected efficiently from the beer distribution industry; facilitating state and local control of alcoholic beverages; and encouraging moderate consumption (temperance).

The three-tier system allows the state to control alcoholic beverages through licensing. Without the three-tier system, increased government regulation and enforcements efforts would be needed resulting in increased costs.

quote:The three-tier system is actually a good thing; mostly. Read up on the history prior to prohibition and the so-called "tied-houses."

Right, I get that. Just wish breweries had the right to self distribute if they choose to.

quote:Small Brewer Statement on the Importance of an Independent Three-Tier Beer Distribution System

The Brewers Association (BA) believes the American consumer should have access to the widest range of beers made available by licensed breweries. The success or failure of a beer should depend on beer drinker demand, rather than artificial restraints to distribution. BA supports laws that respect and enhance beer drinkers’ choice in the marketplace. State laws should support an independent distribution tier that is unencumbered by undue influence, ownership or control by the largest brewers and ensures access to market for all brewers. For small brewers, the ability to be licensed as a distributor is often an essential element that serves to provide them access to market and increase consumer choice. Brewery Direct to Customer Sales

The Brewers Association (BA) believes the American consumer should have access to the widest range of domestically produced beers made available by licensed breweries. The BA recognizes that not all beers have adequate sales levels to find distribution on retailers' shelves or wholesalers' warehouses. In such situations, consumers may be willing to go to the brewery premises to find beers not readily available through normal distribution channels. The success or failure of a beer should depend on consumer demand, rather than on artificial barriers to distribution. BA supports state laws that respect and enhance consumer choice in the marketplace. BA believes that to provide the greatest ongoing choice for consumers, small brewers should have the right to sell beer directly to qualified consumers. For Small Packaging Breweries

The ability to sell beer directly to qualified consumers from a packaging/bottling brewery's premise would enhance customer loyalty and help increase sales within the three tier distribution system. Such right is not intended to bypass the three tier distribution. For Small Brewery-Restaurants/Brewpubs Granting brewery-restaurants/brewpubs the right to offer closed and sealed containers of their company's on premise brewed beer for off premise consumption is an effective means of engendering brand loyalty and improving customer relations and service. Such capability is not intended to bypass the distribution of bottled, canned or prepackaged beer within the three tier distribution system. For Small Brewery-Restaurants/Brewpubs

Granting brewery-restaurants/brewpubs the right to offer closed and sealed containers of their company's on premise brewed beer for off premise consumption is an effective means of engendering brand loyalty and improving customer relations and service. Such capability is not intended to bypass the distribution of bottled, canned or prepackaged beer within the three tier distribution system.

ABInbev and SABMiller aggressively market and aggressively sale. The three-tier system has failed to prevent this. How many billions of dollars were spent by those two companies last year to market their product and try and take up shelf space from smaller brewers?

quote:pre-Prohibition era

I don't buy this argument. That was 100 years ago. You can't look to distribution practices pre-automobile [for the masses] and pre-urban and suburban expansion and then say tied-houses are all we're left with now.

quote:The three-tier system is actually a good thing; mostly.

Yeah, maybe it is a good thing for some brewers who don't want to mess with self-distribution in a region, but that should be a choice, not mandatory. I should be able to brew beer in a properly licensed location and load up the kegs in my truck and go out and sell to bars, restaurants, and even local residents at farmers markets.

quote:Right, I get that. Just wish breweries had the right to self distribute if they choose to.

But if they had the choice they would do it, and we would be right back to they way it was pre-prohibition. There are estimates that over 75% of ALL bars would be exclusive brewery tied-houses. Smaller craft beers would be unable to crack into the market and all the other problems I aluded to earlier would start happening again.

I'm very libertarian/conservative minded when it comes to government, but this is one area where the current regulations mostly foster the growth of the industry. Now, I'm not saying some things couldn't be done to improve the system, but allowing direct sales by the breweries does not seem to be one of the options.

quote: but allowing direct sales by the breweries does not seem to be one of the options.

BS. Other states and other industries allow this and they're not fricked..

quote:But if they had the choice they would do it, and we would be right back to they way it was pre-prohibition. There are estimates that over 75% of ALL bars would be exclusive brewery tied-houses. Smaller craft beers would be unable to crack into the market and all the other problems I aluded to earlier would start happening again.

That's cool I don't go to about 75% of bars anyway because they and their beer selection suck. Their loss.

quote:I'm very libertarian/conservative minded when it comes to government

not if you believe in the statements below

quote:facilitating state and local control of alcoholic beverages; and encouraging moderate consumption (temperance).

The three-tier system allows the state to control alcoholic beverages through licensing. Without the three-tier system, increased government regulation and enforcements efforts would be needed resulting in increased costs.

It is a much, much different world than it was pre-prohibition and using an sort of argument that we would go back to that kind of sales system is absurd.

California doesn't have these same handcuffs on their breweries, and they are doing just fine.

quote:ABInbev and SABMiller aggressively market and aggressively sale. The three-tier system has failed to prevent this. How many billions of dollars were spent by those two companies last year to market their product and try and take up shelf space from smaller brewers?

Sure, they can market aggressivley, but they cannot force bar establishments to carry only their products. But they would be able to do this if you remove the three-tier system. A company as large as Inbev (budweiser) could offer benefits to small bar owners such as free installation of draft systems, free maintenance of products, consignment sales, etc, etc, etc. All of these benefits could surely pursuade the owner to work with the breweries; but the rub is that the owner could not sale anything but inbev product. This would happen in bar after bar after bar.

Small brewers would be unable to get upstarted because they couldn't get their beer to market (unless they could somehow afford the huge startup costs to opening, operating, and brewing).

quote:I don't buy this argument. That was 100 years ago.

Facts are facts. You can take them or dismiss them if you want.

quote:Yeah, maybe it is a good thing for some brewers who don't want to mess with self-distribution in a region, but that should be a choice, not mandatory. I should be able to brew beer in a properly licensed location and load up the kegs in my truck and go out and sell to bars, restaurants, and even local residents at farmers markets.

See above on why you wouldn't be able to sell your product to bars, restaurants, etc.

quote:Small brewers would be unable to get upstarted because they couldn't get their beer to market (unless they could somehow afford the huge startup costs to opening, operating, and brewing).

If consumers were able to purchase from the brewer they wouldn't need to depend on bars and restaurants

I didn't have to depend on some shite hole bar to drive up to the front door of Green Flash and buy a pint of beer from them.. inside the brewery.. with their knowledgeable staff telling me about the beer that I was drinking for a very cheap price.

quote:Sure, they can market aggressivley, but they cannot force bar establishments to carry only their products. But they would be able to do this if you remove the three-tier system. A company as large as Inbev (budweiser) could offer benefits to small bar owners such as free installation of draft systems, free maintenance of products, consignment sales, etc, etc, etc. All of these benefits could surely pursuade the owner to work with the breweries; but the rub is that the owner could not sale anything but inbev product. This would happen in bar after bar after bar.

this absolutely happens now. You think distributers are unbiased? There are numerous accounts of them going after tap handles and pushing shelf space for their biggest clients, InBev and SABMiller

quote:Small brewers would be unable to get upstarted because they couldn't get their beer to market (unless they could somehow afford the huge startup costs to opening, operating, and brewing).

it works just fine in California. San Diego county alone has over 3 dozen breweries, and they are thriving.

quote:this absolutely happens now. You think distributers are unbiased? There are numerous accounts of them going after tap handles and pushing shelf space for their biggest clients, InBev and SABMiller

quote: Small brewers would be unable to get upstarted because they couldn't get their beer to market (unless they could somehow afford the huge startup costs to opening, operating, and brewing).

it works just fine in California. San Diego county alone has over 3 dozen breweries, and they are thriving.

I didn't even want to touch that first one but I know you're right.

quote:This is not true. California does have a three-tier system. Only it is the state that acts as the middleman. Washington state is the only state that does not require some form of a three tier system, but the practice there still utilizes it anyway.

So quit dogging the ability to self distribute. Distributors will still exist.